Home Tech & Gadgets Netflix could introduce a cheaper subscription, but with a big disadvantage

Netflix could introduce a cheaper subscription, but with a big disadvantage


After testing a completely free “subscription” but with limited access to content on the platform, Netflix could also introduce a cheaper subscription that does not limit access, but involves another important compromise.

Netflix has tested a completely free subscription on the Kenyan market, offering access to some of the content available on the premium version of the service. The offer worked more like a demo package, with the free account providing access to only a few original Netflix productions, specially selected to tempt and persuade users to switch to a paid subscription.

This time, it seems that the solution is ready as a compromise option for those who have already set their sights on one of the Netflix subscriptions, but would not want to pay the full price. The offer is the acceptance of advertising breaks, introduced between the episodes of the favorite series. It is unknown at this time what he will do after leaving the post.

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The possibility of introducing an advertising-subsidized tariff plan was discussed by Netflix CFO Spencer Neumann at a March 8 investor conference. However, while he admits that Netflix is ​​not against advertising, such a solution is not currently part of the company’s plans for the near future: “It’s not as if we have religion against advertising, let’s be clear. But that’s not what’s in our plans right now… We have a very nice scalable subscription model, and again, it never says, but it’s not in our plan.

The change of attitude comes after the company’s CEO, Reed Hastings, strongly denied this possibility in early 2020. Meanwhile, the competition has already implemented this strategy, Disney + recently confirming the introduction of a subsidized subscription, compensated by displaying ads . HBO rivals Max and Hulu also offer similar subscription options.

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Previous articleHBO is facing a class action lawsuit over allegations that it provided Facebook with a history of unsolicited subscriber views. According to Variety, HBO is accused of providing Facebook with customer lists, allowing the social network to correlate viewing habits with their profiles. He also claims that HBO knows that Facebook can combine data because HBO is a major advertiser on Facebook, and Facebook can then use that information to redirect ads to its subscribers. Because HBO never received proper customer consent to do so, it is alleged that it violated the 1988 Video Privacy Protection Act (VPPA), according to the lawsuit. HBO, like other sites, discloses to users that it (and its partners) use cookies to deliver personalized ads. However, VPPA requires separate consent from users to share their video viewing history. “A standard privacy policy will not be enough,” he said. Other streaming providers have been hit by similar situations, and TikTok recently agreed to pay $ 92 million for a (partial) violation of the VPPA. In another case, however, a judge ruled in 2015 that Hulu did not knowingly share Facebook data, which could determine a person’s viewing history. The law firm involved in the HBO lawsuit previously won a $ 50 million deal with Hearst after alleging that it violated Michigan’s privacy laws by selling subscriber data.
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